Federal MP Clive Palmer says his party will reconsider its carbon tax position if the government insists its direct action plan is tied to the budget.

Federal MP Clive Palmer says his party may not support a repeal of the carbon and mining taxes.

But Environment Minister Greg Hunt is confident the coalition’s direction action plan will pass the Senate because funding is now tied to the budget.

He says attempts by opposing senators to block the budget could cause a constitutional crisis.

But Mr Palmer says the government’s move is “nothing short of blackmail”.

“They are doing this really as a tactic, like little kids wanting to get their way,” he told reporters in Brisbane.

While the Abbott government may get funding for direct action through, it will need the Palmer United Party (PUP) senators to help repeal both the carbon and mining taxes from July.

Mr Palmer said the coalition may not get it.

“If they’re going to adopt a tactic like that we’ll have to reconsider our position when it comes to the mining tax and the carbon tax,” he said.

Mr Palmer claims direction action is a “token gesture”, a waste of money and a coalition “slush fund” to appease consultants and lobbyists.

He says the money allocated for the policy should be used for pensions, which could be under review in the main budget.

But while he’s against direction action, Mr Palmer said PUP would support a national inquiry on climate change.